Recent research in international trade emphasizes the importance of firms’ extensive margins for understanding overall patterns of trade as well as how firms respond to specific events such as trade liberalization. In this paper, we use detailed U.S. trade statistics to provide a broad overview of how the margins of trade contribute to variation in U.S. imports and exports across trading partne...

In this paper we extend the generic trust model that was introduced in Tan and Thoen. The model of Tan and Thoen addresses in a generic way the issues related to how to build trust for conducting a first trade transaction in electronic commerce (i.e. a trade transaction in an electronic environment between two possibly international parties who are new to each other or have not conducted trade ...

This paper tries to analyze the impacts of intermediate goods trade on production, consumption, investment, net exports, employment, labor wage and capital rent of Iran in its bilateral trade relations with China. This analysis has been done by modeling, solving and calibrating an international real business cycles (IRBC) model in period 1980-2009. The results show that when elasticity of subst...

This paper develops an evolutionary trade network game (TNG) that combines evolutionary game play with endogenous partner selection. Successive generations of resource-constrained buyers and sellers choose and refuse trade partners on the basis of continually updated expected payo®s. Trade partner selection takes place in accordance with a modi ̄ed Gale-Shapley matching mechanism, and trades are...

Misunderstandings arise in international trade due to difference in cultural background of trade partners. Trust and the role it plays in trade are influenced by culture. Considering that trade always involves working on the relationship with the trade partner, understanding the behaviour of the other is of the essence. This paper proposes to involve cultural dimensions in the modelling of trus...

This article investigates the impact of terrorist attacks on global capital markets. We find economic consequences of terrorist attacks spillover through trading partners. When a bigger economy (measured by GDP) is targeted, the spillover is specifically prominent for economically smaller trading partners. Such partners see a -2.5% reduction in national stock indices. Odds for smaller trading p...

Iran`s pharmaceutical products market as one of the major markets of the country has been faced with fluctuations over time. Suitable market selection is necessary for stability of pharmaceutical exports. Study of the global market structure of this product leads to policy makers in development, production, and trade of pharmaceuticals and finally increases country’s share of the world pharmace...

While the debate on whether countries should or should not sign trade agreements with selected partners continues, governments have significantly stepped up the rate at which they enter into such agreements. A number of such agreements have been signed lately and many more are under negotiation. Multinational firms get impacted by these agreements irrespective of whether these are beneficial to...

This paper investigates the implications of matching and searching in inter rm trade. From a schematic model, whereby rms nd long-term trading partners by successive matches, we derive some important propositions. Trade between matched rms generates an expected economic pro t, depending on match quality, while trade between searching rms may be conducted at a short-term loss, being a form of ca...